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Stock-Based Compensation
 3 Months Ended
Mar. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation

Note 7 – Stock-Based Compensation

 

In addition to cash compensation, the Company may compensate certain service providers, including employees, directors, consultants, and other advisors, with equity-based compensation in the form of stock options, stock awards and restricted stock awards. The Company recognizes all equity-based compensation as stock-based compensation expense based on the fair value of the compensation measured at the grant date. For stock options, fair value is calculated at the date of grant using the Black-Scholes-Merton option pricing model. For stock awards and restricted stock awards, fair value is the closing stock price for the Company’s common stock on the grant date. The expense is recognized over the vesting period of the grant. For the periods presented, all stock-based compensation expense was classified as a component within selling, general and administrative expense in the Company’s consolidated statements of operations.

 

The amount of stock-based compensation expense is as follows (amounts in thousands):

 

         
   Three months ended March 31, 
   2022   2021 
Stock options  $31   $24 
Stock awards   20    - 
Restricted stock awards   -    1 
Total  $51   $25 

 

During the three months ended March 31, 2022, the Company awarded 1,500 shares of the Company’s common stock at a fair market value price of $13.45 per share to an employee of the Company. During the three months ended March 31, 2021, no stock options were awarded.

 

The estimated unrecognized compensation cost from unvested awards which will be recognized ratably over the remaining vesting phase is as follows (amounts in thousands):

 

Years ended December 31st:  Unvested stock options   Unvested restricted stock awards   Total unrecognized compensation expense 
2022 (remaining nine months)  $67   $-   $67 
2023   40    -    40 
2024   11    -    11 
   $118   $-   $118 

 

 

Where Food Comes From, Inc.

Notes to the Consolidated Financial Statements

(Unaudited)

 

Equity Incentive Plans

 

Our 2006 Equity Incentive Plan (the “2006 Plan”) and 2016 Equity Incentive Plan (the “2016 Plan,” and together with the 2006 Plan, the “Plans”) provide for the issuance of stock-based awards to employees, officers, directors and consultants. The Plans permit the granting of stock awards and stock options. The vesting of stock-based awards is generally subject to the passage of time and continued employment through the vesting period.

 

Stock Option Activity

 

Stock option activity under our Equity Incentive Plans is summarized as follows:

 

               Weighted avg.     
       Weighted avg.   Weighted avg.   remaining     
   Number of   exercise price   grant date fair   contractual life   Aggregate 
   awards   per share   value per share   (in years)   intrinsic value 
                     
Outstanding, December 31, 2021   100,235   $8.36   $7.53    5.88   $620,445 
Granted   -   $-   $-    -      
Exercised   -   $-   $-    -      
Expired/Forfeited   -   $-   $-    -      
Outstanding, March 31, 2022   100,235   $8.36   $7.53    5.63   $365,787 
Exercisable, March 31, 2022   79,587   $7.03   $6.85    4.75   $351,711 
Unvested, March 31, 2022   20,648   $13.50   $10.14    9.04   $14,076 

 

The aggregate intrinsic value represents the total pre-tax intrinsic value (the aggregate difference between the closing price of our common stock on March 31, 2022 and the exercise price for the in-the-money options) that would have been received by the option holders if all the in-the-money options had been exercised on March 31, 2022.

 

Stock Activity

 

Non-vested stock award activity under our Equity Incentive Plans is summarized as follows:

 

       Weighted avg. 
   Number of   grant date 
   options   fair value 
Non-vested shares, December 31, 2021   -   $- 
 Granted   1,500   $13.45 
 Vested   (1,500)  $13.45 
 Forfeited   -   $- 
Non-vested shares, March 31, 2022   -   $- 

 

 

Where Food Comes From, Inc.

Notes to the Consolidated Financial Statements

(Unaudited)